New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-01-07
RAILROAD BUILDING And POOLS

| RAILROAD BUiLDING ANO ToOLo.
Senator Plattrs criticism of the Interstate
Commerce bill on Wednesday was sensible as
we'll as courageous. 1t IS one Of the weak
points of popular government that measures
Of most worthy intent, but bad in some details,
are passed at times because public opinion is
Supposed to insist upon a measure OF the sort,
and men fear that honest criticism Of details
NAV be mistaken for hostility to the main pur-
pose. In this fear they refrain from calling
attention to objections and faults which might
be cured by amendment the measure is passed
in defective form, and it not rarely defeats the
cherished aims of those who have most earnest
ly urged its adoption. Especial credit is there
fore due to men like Senator Plat, who do not
shrink from the duty of pointing out defects IN
measure through fear Of possible miscon-
structiOn.
Railroad pools have been almost universally
misunderstood. AS Senator Plat urges, and by
few more completely than by some railway
MANAGERS who JOIN in them. If anybody mag
ines that pool or combination or freight con-
tract can put an end to competition in the
business of transportation, he is in error. Com
petition is of two kinds. The more common
md least effective sort occurs between rival
roads which undeibid each other for the same
traffic. A more far-rcaching and effective com
petition appears when unemployed capital
undertakes to build new railroads in order to
divide the traffic of certain region. 1hat
sort of competition is intensified beyond calcu-
lation when existing roads are enabled 10y COM
bination to charge high rates or to gain large
profits. Pools and all similar combinations
tend directly to bring this more dangerous and
lasting form Of competition into operation ;
for railroad managers, it is literally choosing TO
Ay from ills they have TO others that they know
not of. The one thing known is that each
new road, once brought into existence, VIII
forever take away some part OF the business
which older roals formerly enjoyed.
The pool. then, cannot terminate competition
or check il. bat may only change its FORM
Senator Plat is right in saying that there IS
no clement of crmnaity, or intentional hos
fiitv to public interests, in the formation OF a
traffic agreement, and so long as rates proposed
are not excessive or extortionate, no actual
harm to the public interest justfies interior
ence. The history of railway pools IN ms
country. as was recently shown, proves that
they have not prevented grca or decline IN
the cost of transportation by rail than IN al
most anV other important pfplUCp vi S'i''N'
The railways offer premium TO cap' Ill lor
creating rivals for themselves, when thcy or
ean.zc pools TO secure themselves against com
pe;ition. and so to maintain high rates Tor
TRANSPORTATION If they please to do that hlng'
the effect is to secure for the people more rall-
roads, reaching nearer many towns and homes'
and tending surely TO cheaper transportation
in the end and to equalizc rs benefits. The pro
cess NAV lie foolish one for the railroads IL may
even be pernieous in financial influence, when
the building of too many railroads is encour-
aacd But there is no element OF criminali'y
about il; nothing that Ought TO he treated as
n crime.
Within the last year about 5000 miles OF
..;,.ood Lovo b,cn built. Thereby about
so 600 SQUARE miles of territory have been
brought within five miles of 4 railroad, and
far greater area benefited less directly. More
than 100000 acres of good farming land
on which il was not profitable to grow many
crops year ago. have been brought Wi'hih
,c,ch Of markets and made more valuao'c ny
the railroad building in a single year. DOCS
not every one see that the disposition oil cap
ital to engage in such work would have pceh
greatly diminished if not entirely Destroyer
had the Inter- State Commerce bill been passed
an x-oar apo9